The Impact of Debt on Job-Search Behavior Among South-Korean Low-Income Youths: Focusing on the Mediating Effect of Self-Esteem

Abstract

This study aims to investigate the mediating effect of self-esteem in the path from the burden of debt to job-search behavior among South-Korean low-income youths under a economic recession. Using data from the Second Panel Study on the Participants of the Youth Hope Growing Account (YHGA) program in Korea, this study tested a theoretical model using structural equation modeling (SEM) with maximum likelihood (ML) estimation. The mediation effect was estimated using bootstrapping. The results revealed a significant effect of debt burden on job-search behavior, which was fully mediated by self-esteem. These findings suggest the necessity of providing financial and psychological support for economically disadvantaged youth to facilitate successful entry into the labor market in South Korea.